Having all of this data to hand is only as useful as the ability to interpret what it means accurately. Indeed, conducting too simple an analysis or using complicated techniques in the wrong way can lead to incorrect inference and bad businesses decisions.

Econometrics can help you to understand what data really tells you about your business, your customers, and the wider market, by being:
transparent – as a technique, regressions are not subject to the “black box” critique;
flexible – there are a battery of different techniques to suit what output is required; and
robust – econometrics is underwritten by an established wealth of academic literature.

How do price changes affect sales volumes?
Elasticity analysis is used to understand how responsive an economic variable is to another It is commonly used to understand how sales vary as price changes.